EXHIBIT 99.1
[Seacor logo] PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES THIRD QUARTER RESULTS
HOUSTON, TEXAS
October 25, 2004
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net earnings
for the third quarter ended September 30, 2004 of $3.4 million, or $0.18 per
diluted share, on operating revenues of $116.5 million. For the nine months
ended September 30, 2004, net earnings were $0.6 million, or $0.03 per diluted
share, on operating revenues of $309.9 million.
For the third quarter ended September 30, 2003, net earnings were $2.9 million,
or $0.15 per diluted share, on operating revenues of $103.2 million. For the
nine months ended September 30, 2003, net earnings were $13.7 million, or $0.71
per diluted share, on operating revenues of $305.3 million.
For the immediately proceeding quarter ended June 30, 2004, the Company reported
net earnings of $0.2 million, or $0.01 per diluted share, on operating revenues
of $97.4 million.
Financial results for the third quarter ended September 30, 2004 as compared to
the immediately preceding quarter ended June 30, 2004 were impacted by a variety
of factors highlighted below.
o INCREASED OPERATING REVENUES. Operating revenues for the quarter were
$116.5 million, an increase of $19.1 million from the previous
quarter. Environmental Services' emergency response and remediation
activities increased in the U.S. and this segments' business expanded
internationally. Inland River Services' activity increased; rates for
transportation improved, and the Company took delivery of additional
barges during the quarter. In Offshore Marine Services, rates per day
worked and utilization improved in the U.S. Gulf of Mexico, North Sea
and Asian markets. Helicopter flight hours increased in Aviation
Services, which is included in the Company's "Other" business segment.
o INCREASED OPERATING INCOME. Operating income for the quarter was $8.0
million, an increase of $6.2 million from the previous quarter.
Offsetting the increase in operating revenues described above were
increases in operating expenses primarily associated with adding
equipment to the Inland River fleet and Environmental Services'
international expansion. Operating expenses declined in Offshore
Marine Services due to fewer drydockings and the success of cost
reduction programs. Administration and general expense increased due
to business development activities.
Gains on asset sales declined $6.2 million between quarters due to
fewer vessel dispositions.
o INCREASED INTEREST INCOME. Interest income for the quarter was $2.2
million, an increase of $0.5 million from the previous quarter.
Interest rates increased between quarters.
o DECREASED FOREIGN CURRENCY TRANSACTION LOSSES. Foreign currency
transaction losses for the quarter were $0.2 million, a decline of
$0.5 million from the previous quarter. Losses resulted from the
effect of currency exchange rate changes with respect to loans between
SEACOR and certain of its foreign subsidiaries and other transactions
denominated in currencies other than the functional currency of
various subsidiaries.
o MARKETABLE SECURITIES SALE LOSS. Marketable securities sale
transactions resulted in net losses of $0.8 million for the quarter as
compared to net gains of $2.8 million in the previous quarter.
o INCREASED EQUITY EARNINGS. Equity earnings for the quarter were $1.4
million, an increase of $0.7 million from the previous quarter.
Results of the previous quarter included a $0.5 million loss from the
sale of an interest in an Asian joint venture.
Drydock expense in Offshore Marine Services aggregated $1.6 million in the third
quarter with 9 vessels completing repairs. One vessel was also sold in the
quarter with a carrying value of $1.9 million.
Two new and 1 used offshore marine vessel, 115 new dry cargo hopper barges, 13
new chemical tank barges and 3 used inland river towboats were acquired by the
Company in the third quarter for aggregate consideration of $59.9 million.
Remaining capital commitments at September 30, 2004 for 4 new offshore marine
vessels, 68 new dry cargo hopper barges, 22 new chemical tank barges, 7 new
helicopters and other equipment aggregated $76.0 million. Deliveries are
expected through the remainder of the year and into 2005. An option to acquire
150 newly constructed dry cargo hopper barges expired shortly after the end of
the third quarter.
In the quarter, SEACOR acquired 51,033 shares of its common stock for treasury
at an aggregate cost of $2.1 million pursuant to a stock and debt repurchase
plan. At September 30, 2004, $43.3 million of authority remains available for
future purchases of the Company's stock and 5-7/8% and 7.2% notes.
At September 30, 2004, the Company's cash, marketable securities, and
construction reserve funds totaled $440.1 million, a decrease of $1.7 million
from the prior quarter. At September 30, 2004, the Company's long-term debt
totaled $384.5 million, an increase of $40.0 million from the previous quarter.
The Company is exploring the impact of tax legislation recently passed by
Congress and signed into law by the President. As a result of this legislation,
the Company believes it would be in the position to repatriate accumulated
foreign earnings at an effective federal tax rate of 5.25% which, in most cases,
is significantly less than the Company's provision for deferred tax liabilities.
Subsequent to the end of the quarter, SEACOR entered into a Stock Purchase
Agreement with Rowan Companies, Inc. and ERA Aviation, Inc. pursuant to which
the Company agreed to purchase all outstanding shares of capital stock of ERA
for a cash purchase price of $118.2 million subject to final working capital
adjustments. The purchase is also subject to the expiration of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act and the
satisfaction of customary closing conditions.
SEACOR intends to combine Tex-Air Helicopters, Inc. (a wholly-owned subsidiary
of SEACOR) with ERA and to continue the combined operation under the name of
"ERA Aviation." The combined fleet would consist of 128 helicopters, 16 fixed
wing aircraft and 14 operating bases.
SEACOR and its subsidiaries are engaged in the operation of a diversified fleet
of offshore support vessels that service oil and gas exploration and development
activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin
America and other international regions. Other business activities primarily
include Environmental Services, Inland River Services, and Aviation Services.
This release includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements concerning management's expectations, strategic objectives, business
prospects, anticipated economic performance and financial condition and other
similar matters involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance or
achievements of results to differ materially from any future results,
performance or achievements discussed or implied by such forward-looking
statements. Such risks, uncertainties and other important factors include, among
others: the cyclical nature of the oil and gas industry, adequacy of insurance
coverage, currency exchange fluctuations, changes in foreign political, military
and economic conditions, the ongoing need to replace aging vessels, dependence
of offshore marine operations on several customers, dependence of spill response
revenue on the number and size of spills and upon continuing government
regulation in this area and our ability to comply with such regulation and other
governmental regulation, industry fleet capacity, changes in foreign and
domestic oil and gas exploration and production activity, competition,
vessel-related risks, effects of adverse weather conditions and seasonality on
aviation services, helicopter related risks, effects of adverse weather and
river conditions and seasonality on inland river operations, the level of grain
export volume, the effect of fuel prices on barge towing costs, variability in
freight rates for inland river barges, changes in the Company's environmental
services segment OSRO classification, liability in connection with providing
spill response services, restrictions imposed by the Shipping Act of 1916 and
the Merchant Marine Act of 1920 on the amount of foreign ownership of the
Company's common stock, the effect of international economic and political
factors in inland river operations and various other matters, many of which are
beyond the Company's control and other factors. The words "estimate," "project,"
"intend," "believe," "plan" and similar expressions are intended to identify
forward-looking statements. Forward-looking statements speak only as of the date
of the document in which they are
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made. We disclaim any obligation or undertaking to provide any updates or
revisions to any forward-looking statement to reflect any change in our
expectations or any change in events, conditions or circumstances on which the
forward-looking statement is based. The forward-looking statements in this
release should be evaluated together with the many uncertainties that affect our
businesses, particularly those mentioned under "Forward-Looking Statements" in
Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form
8-K (if any), which we incorporate by reference.
For additional information, contact Randall Blank, Executive Vice President and
Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's
website at www.seacorholdings.com.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2004 2003 2004 2003
------------- ------------- ------------ -------------
Operating Revenues $ 116,486 $ 103,234 $ 309,863 $ 305,253
------------- ------------- ------------ -------------
Costs and Expenses:
Operating expenses 79,134 72,264 227,923 208,786
Administrative and general 14,900 13,676 43,833 41,146
Depreciation and amortization 14,352 13,411 42,469 41,755
------------- ------------- ------------ -------------
108,386 99,351 314,225 291,687
------------- ------------- ------------ -------------
Gains (Losses) on Asset Sales(1) (119) 2,349 9,636 7,910
------------- ------------- ------------ -------------
Operating Income (Loss) 7,981 6,232 5,274 21,476
------------- ------------- ------------ -------------
Other Income (Expense):
Interest income 2,180 1,540 5,222 5,966
Interest expense (5,565) (4,603) (16,331) (14,528)
Debt extinguishment expense - - - (2,091)
Derivative income (loss), net (140) (443) (621) 3,930
Foreign currency transaction gains (losses), net (184) (1,714) (407) 115
Marketable securities sale gains (losses), net (756) 2,411 4,746 5,852
Other, net 79 (15) 431 (759)
------------- ------------- ------------ -------------
(4,386) (2,824) (6,960) (1,515)
------------- ------------- ------------ -------------
Income Before Taxes, Minority Interest and Equity
in Earnings of 50% or Less Owned Companies 3,595 3,408 (1,686) 19,961
Income Taxes 1,511 1,334 178 7,329
------------- ------------- ------------ -------------
Income Before Minority Interest and Equity in
Earnings of 50% or Less Owned Companies 2,084 2,074 (1,864) 12,632
Minority Interest in Net Income of Subsidiaries (108) (112) (194) (451)
Equity in Earnings of 50% or Less Owned Companies 1,388 935 2,631 1,503
------------- ------------- ------------ -------------
Net Income $ 3,364 $ 2,897 $ 573 $ 13,684
============= ============= ============ =============
Earnings Per Common Share:
Basic $ 0.18 $ 0.16 $ 0.03 $ 0.71
Diluted 0.18 0.15 0.03 0.71
Weighted Average Common Shares Outstanding:
Basic 18,210,882 18,629,664 18,341,248 19,182,564
Diluted 18,357,438 18,785,256 18,495,594 19,479,462
- -------------------------
(1) Previously reported gains on asset sales have been reclassified from "Other
Income (Expense)" to conform to the three and nine months ended September
30, 2004 financial statement presentation.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended
-------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2004 2004 2004 2003 2003
----------- ---------- ---------- ----------- ----------
STATEMENTS OF OPERATIONS:
Operating Revenues $ 116,486 $ 97,403 $ 95,974 $ 100,956 $ 103,234
----------- ---------- ---------- ----------- ----------
Cost and Expenses:
Operating expenses 79,134 73,759 75,030 78,504 72,264
Administrative and general 14,900 13,857 15,076 16,538 13,676
Depreciation and amortization 14,352 14,156 13,961 13,751 13,411
----------- ---------- ---------- ----------- ----------
108,386 101,772 104,067 108,793 99,351
----------- ---------- ---------- ----------- ----------
Gains (Losses) on Asset Sales(1) (119) 6,117 3,638 9,612 2,349
----------- ---------- ---------- ----------- ----------
Operating Income (Loss) 7,981 1,748 (4,455) 1,775 6,232
----------- ---------- ---------- ----------- ----------
Other Income (Expense):
Interest income 2,180 1,663 1,379 1,565 1,540
Interest expense (5,565) (5,388) (5,378) (4,785) (4,603)
Derivative income (loss), net (140) (560) 79 (1,541) (443)
Foreign currency transaction gains (losses), net (184) (689) 466 3,625 (1,714)
Marketable securities sale gains (losses), net (756) 2,753 2,749 743 2,411
Other, net 79 233 119 106 (15)
----------- ---------- ---------- ----------- ----------
(4,386) (1,988) (586) (287) (2,824)
----------- ---------- ---------- ----------- ----------
Income (Loss) Before Taxes, Minority Interest and
Equity in Earnings of 50% or Less Owned Companies 3,595 (240) (5,041) 1,488 3,408
Income Taxes 1,511 169 (1,502) 3,067 1,334
----------- ---------- ---------- ----------- ----------
Income (Loss) Before Minority Interest and Equity
in Earnings of 50% or Less Owned Companies 2,084 (409) (3,539) (1,579) 2,074
Minority Interest in Net (Income) Loss of Subsidiaries (108) (91) 5 (66) (112)
Equity in Earnings of 50% or Less Owned Companies 1,388 673 570 (85) 935
----------- ---------- ---------- ----------- ----------
Net Income (Loss) $ 3,364 $ 173 $ (2,964) $ (1,730) $ 2,897
=========== ========== ========== =========== ==========
EARNINGS (LOSS) PER COMMON SHARE:
Basic $ 0.18 $ 0.01 $ (0.16) $ (0.09) $ 0.16
Diluted(2) 0.18 0.01 (0.16) (0.09) 0.15
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 18,211 18,347 18,468 18,509 18,630
Diluted(2) 18,357 18,476 18,468 18,509 18,785
COMMON SHARES OUTSTANDING AT PERIOD END 18,292 18,313 18,533 18,581 18,729
- ------------------------------
(1) During the second quarter, the Company reclassified its reporting of "Gains
on Asset Sales" to Operating Income (Loss) from "Other Income and Expense."
This reclassification has been reflected in all reported periods.
(2) Outstanding stock options and restricted stock have been excluded from the
computation of diluted loss per common share and diluted weighted average
common shares for each of the three month periods ended March 31, 2004 and
December 31, 2003 as the effect was anti-dilutive.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(UNAUDITED)
Three Months Ended
---------------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2004 2004 2004 2003 2003
------------ ------------ ------------ ------------ ------------
BALANCE SHEET DATA, AT PERIOD END (IN THOUSANDS):
Cash, Securities, Construction Reserve Funds $ 440,091 $ 441,805 $ 441,502 $ 438,131 $ 428,372
Total Assets 1,456,536 1,394,902 1,401,426 1,402,611 1,370,630
Total Long-term Debt 382,319 342,271 332,225 332,179 332,213
Stockholders' Equity 766,763 757,886 766,529 770,446 768,530
OPERATING REVENUES BY SEGMENT (IN THOUSANDS):
Offshore Marine Services $ 72,825 $ 67,039 $ 66,016 $ 74,262 $ 81,194
Environmental Services 21,144 14,654 16,392 11,732 10,625
Inland River Services 16,076 10,038 8,576 10,728 7,247
Other(1) 7,485 6,680 5,827 5,328 4,803
Intersegment Eliminations (1,044) (1,008) (837) (1,094) (635)
------------ ------------ ------------ ------------ ------------
$ 116,486 $ 97,403 $ 95,974 $ 100,956 $ 103,234
============ ============ ============ ============ ============
OPERATING INCOME (LOSS) BY SEGMENT (IN THOUSANDS):
Offshore Marine Services $ 6,359 $ 4,677 $ (1,525) $ 3,976 $ 5,779
Environmental Services 2,741 816 954 894 3,421
Inland River Services 3,153 932 1,016 2,523 970
Other(1) (393) (1,308) (1,895) (1,893) (1,122)
Corporate Expenses (3,879) (3,369) (3,005) (3,725) (2,816)
------------ ------------ ------------ ------------ ------------
$ 7,981 $ 1,748 $ (4,455) $ 1,775 $ 6,232
============ ============ ============ ============ ============
OFFSHORE MARINE VESSELS - AVAILABLE DAYS(2):
Anchor Handling Towing Supply -
Domestic 276 273 304 460 460
Foreign 759 741 724 890 1,012
Supply -
Domestic 644 731 790 831 920
Foreign 828 910 910 1,061 1,104
Towing -
Domestic 275 182 273 184 184
Foreign 736 837 1,026 1,095 1,196
Crew 6,024 5,921 6,188 6,321 6,699
Geophysical, Freight and Other 50 - 91 92 92
Mini-supply 2,619 2,708 2,730 2,760 2,760
Standby Safety 1,932 1,911 1,911 1,871 1,840
Utility - - - 2,581 3,253
------------ ------------ ------------ ------------ ------------
14,143 14,214 14,947 18,146 19,520
============ ============ ============ ============ ============
- ----------------------
(1) Primarily includes Aviation Services.
(2) Excludes vessels that are bareboat chartered-out, vessels owned by
corporations that participate in pooling arrangements with the Company,
minority owned joint venture vessels and managed vessels.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(UNAUDITED)
Three Months Ended
--------------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2004 2004 2004 2003 2003
----------- ----------- ----------- ----------- ------------
OFFSHORE MARINE VESSELS - RATES PER DAY WORKED(1) (2):
Anchor Handling Towing Supply -
Domestic $ 22,009 $ 19,115 $ 15,888 $ 22,111 $ 20,095
Foreign 9,534 9,539 8,524 9,212 9,927
Supply -
Domestic 6,720 5,994 6,300 6,079 6,062
Foreign 10,095 9,729 9,067 8,860 8,926
Towing -
Domestic 6,118 6,040 6,055 6,091 6,093
Foreign 6,769 6,775 6,586 6,577 7,236
Crew 3,458 3,314 3,297 3,323 3,257
Geophysical, Freight and Other 14,000 - - - -
Mini-supply 2,937 2,932 2,976 2,992 2,998
Standby Safety 7,839 7,719 7,694 6,933 6,733
Utility - - - 1,752 1,774
OFFSHORE MARINE VESSELS - UTILIZATION(2):
Anchor Handling Towing Supply -
Domestic 85.2% 68.3% 68.2% 56.2% 65.9%
Foreign 90.4% 63.9% 61.5% 72.8% 81.9%
Supply -
Domestic 68.9% 76.1% 71.7% 50.5% 72.7%
Foreign 86.9% 72.8% 73.4% 86.1% 88.7%
Towing -
Domestic 64.3% 91.8% 56.7% 100.0% 100.0%
Foreign 61.7% 61.8% 67.4% 75.0% 82.7%
Crew 93.5% 89.0% 82.8% 78.5% 75.9%
Geophysical, Freight and Other 50.0% - - - -
Mini-supply 90.9% 86.7% 81.7% 86.3% 91.6%
Standby Safety 89.7% 85.9% 87.0% 90.3% 89.9%
Utility - - - 52.4% 58.7%
Overall Utilization 88.2% 83.2% 78.6% 75.1% 77.5%
Utilization Lost to Market Conditions 7.9% 12.9% 17.1% 21.4% 18.9%
Utilization Lost to Operating Conditions 3.9% 3.9% 4.3% 3.5% 3.6%
HELICOPTER FLIGHT HOURS 7,431 6,714 5,750 5,422 5,131
- ---------------------------
(1) Revenues for certain vessels, primarily North Sea standby safety, are
earned in foreign currencies, principally British Pounds Sterling. These
revenues have been converted to U.S. dollars at the weighted average
exchange rate for the periods indicated.
(2) Excludes vessels that are bareboat chartered-out, vessels owned by
corporations that participate in pooling arrangements with the Company,
minority owned joint venture vessels and managed vessels.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTARY DATA
(UNAUDITED)
September 30, 2004
--------------------------------------------------
Joint Pooled/ Jun. 30, Mar. 31, Dec. 31, Sep. 30,
Owned Leased-in Ventured Managed Total 2004 2004 2003 2003
----- --------- -------- ------- ----- -------- -------- -------- --------
OFFSHORE MARINE FLEET COUNT:
OPERATED DOMESTIC -
Anchor Handling Towing Supply 1 2 1 - 4 4 4 6 5
Crew 34 19 1 - 54 49 53 53 57
Geophysical, Freight and Other - - - - - - - 1 1
Mini-supply 22 4 - - 26 26 27 27 28
Standby Safety - - - - - - - - -
Supply 3 2 2 1 8 8 10 9 11
Towing 1 2 - - 3 2 2 2 2
Utility - - - - - - - - 34
------- ------- ------- ------- ------- ------- ------- ------- -------
61 29 4 1 95 89 96 98 138
------- ------- ------- ------- ------- ------- ------- ------- -------
OPERATED FOREIGN -
Anchor Handling Towing Supply 12 - 1 - 13 14 15 20 21
Crew 19 - 4 - 23 26 33 34 33
Geophysical, Freight and Other 1 - 1 - 2 1 2 3 1
Mini-supply 3 - 1 - 4 5 5 5 4
Standby Safety 19 - 3 5 27 27 27 27 26
Supply 7 2 4 - 13 14 15 17 18
Towing 9 - 21 - 30 31 35 31 36
Utility - - - - - - - - 2
------- ------- ------- ------- ------- ------- ------- ------- -------
70 2 35 5 112 118 132 137 141
------- ------- ------- ------- ------- ------- ------- ------- -------
WORLDWIDE OPERATIONS -
Anchor Handling Towing Supply 13 2 2 - 17 18 19 26 26
Crew 53 19 5 - 77 75 86 87 90
Geophysical, Freight and Other 1 - 1 - 2 1 2 4 2
Mini-supply 25 4 1 - 30 31 32 32 32
Standby Safety 19 - 3 5 27 27 27 27 26
Supply 10 4 6 1 21 22 25 26 29
Towing 10 2 21 - 33 33 37 33 38
Utility - - - - - - - - 36
------- ------- ------- ------- ------- ------- ------- ------- -------
131 31 39 6 207 207 228 235 279
======= ======= ======= ======= ======= ======= ======= ======= =======
INLAND BARGES, DOMESTIC
Dry Cargo Hopper 631 182 6 210 1,029 911 792 784 735
Chemical Tank 14 - - - 14 1 - - -
------- ------- ------- ------- ------- ------- ------- ------- -------
645 182 6 210 1,043 912 792 784 735
======= ======= ======= ======= ======= ======= ======= ======= =======
HELICOPTERS, DOMESTIC 25 18 - 1 44 43 43 41 36
======= ======= ======= ======= ======= ======= ======= ======= =======
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